Primary Residence to Mid Term/Short Term Rental Renovations

[Josie Kelley]

Hello all,

I needed to talk this through with some seasoned individuals so I'm hoping I can get some ideas/guidance. I'm currently house hunting and in the process of lining up financing for a future house hack. I intend to keep my current residence and convert it into a rental. My dilemma is my home is need of some upgrades and repairs and I'm not sure if getting a cashout refi for the renovations is the best move. My current interest rate is 4% and I don't want to trade up to a 6+% loan. Would getting a small hard money or construction loan be more advantageous? My understanding is I would need to have a rental agreement in place for my current home before moving on to the next :/

I appreciate any feedback :)

Thanks!

[Trent B Paul]

@Josie Kelley Also make sure not to overlook the quality of contractor that you utilize to perform your renovations. The longer they take and farther over budget they go, the longer you have to hold the more expensive note and end up paying more in interest = less in PROFIT